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4 Steps to Budgeting for a Home Improvement Project

When you own a home there’s a variety of home improvement projects that are bound to arise over the years.

Whether you have smaller home improvements or full-on remodels, home projects usually don’t come cheap.

That being said, you’ll likely have to budget and save accordingly to make any home renovation happen. Here are four steps to budgeting for your home project.

1. Know What You Need and Can Afford

When you have a home improvement project in mind, you probably imagine all the wonderful upgrades you can make to whatever area you’re working on. Of course, the more you want to do to a space, the more expensive your project will be.

Consider the items on your list and determine what’s a priority and what can wait. You might need to replace a rotting deck or damaged roof, whereas you simply want to upgrade your master suite or add on an office. Moreover, consider your income and figure out what’s feasible for you to afford. If the projects too big, you may need to borrow money, do it in steps, or wait until you have saved more up.

2. Estimate Costs & Compare

After you’ve decided what you’re going to renovate, the next step is researching costs and contractors. Hire or meet with a couple of professionals to give you estimate on your renovation. Make sure they give you a price for every aspect of your project. That way you’ll be able to know what you can or should cut based on your budget.

Furthermore, it’s always good to receive more than one cost estimate so you know you’re getting the best price possible. Of course, always beware a price that’s too good to be true, as that could lead to a less than stellar job.

3. Account for the Unexpected

Whenever you alter anything on your home, especially in more major remodels, you must always account for any unexpected costs. Things inevitably come up. Problems may arise, think electrical issues or water damage, that almost always make your project cost more.

Be sure to add a little extra to your budget or leave a little wiggle room to prepare yourself for any unexpected payments. You’ll be prepared and won’t have to go into debt or sacrifice the project.

4. Create Your Budget & Stick to It

Once you’ve figured out how much your home renovation is going to cost you merely account for it within your regular budget. Figure out your needs, savings, and monthly expenses, subtract that from your income. Then, decide how much each month you want to put into your renovation category and how long you want to budget for your project. Once you’ve figure it into your monthly expenses, you simply have to stick to it.

Budgeting for your home improvements doesn’t have to be difficult. All it takes is a little research, determining what you really need, and knowing all your costs. After that, all it takes is sticking to your budget.

What home improvement projects have you paid for yourself and what have you borrowed for?